Three of China's biggest banks to provide support for property developers

China announced a new batch of rules on Wednesday night to stabilize the property market by promising financial support for all real estate developers.

Three of China's biggest commercial banks have agreed to provide fundraising support to property developers, including industry giant Vanke, in a coordinated effort to support the country's property sector.

Bank of Communications Co said it agreed to provide a 100 billion yuan (US$13.98 billion) line of credit to Vanke and a 20 billion yuan line of credit to Midea Real Estate Holding, two separate statements issued by the bank said on Wednesday.

Under the agreements, BoCom will be likely to offer the two developers property development loans, loans for M&A deals and bond investments.

The agreement is part of BoCom's efforts to implement 16 measures outlined by Chinese regulators that aim to boost liquidity in the property sector, the bank said in the statements.

"BoCom will continue to fulfill the responsibility of a state-owned bank, (and) accurately promote high-quality economic development with high-quality financial services," it said.

Also on Wednesday, Agricultural Bank of China said it has signed strategic agreements to provide fundraising support to five property companies, including Vanke, Longfor Group Holdings and China Resources Land Ltd. The bank did not give further details on the scale of the support.

Bank of China also said on Wednesday it agreed to provide a line of credit of up to 100 billion yuan to Vanke.

Vanke is the country's second-largest developer by sales.

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